Happy New Week Surfers,
isn’t it a relief to have NFP week behind us once again? As always, we negotiated this week with caution and kept our capital intact. With a new week of course, comes new analysis and the first thing I note is that the poor old gap traders are struggling again having yielded 60pips to date on Eur/Usd, chasing around 20!! I will stick to the StP strategy thank you very much.
The price seems to have rejected the 1.32 area for now and we can see a massive quadruple top on H4 chart, as price action continues it’s week long consolidation in a 200 pip range. I’m not convinced that we won’t see another test of the 1.32 highs later in the week, after a bounce off our daily critical zone @ 1.3029. If this level breaks of course, the Euro will once again be under enormous pressure and headed for the abyss.
So our trading week starts with a breakout of the bullish channel that began in early January. Our pivots are slightly bullish but the weekly & daily pivots have united in defiance of the monthly which languishes some 150 pips to the South. This means that price action will be attracted to the united shorter term pivots, so my sentiment is bullish for this session. I can also see the continuation of today’s easing is a distinct possibility. We have two hotspots available for this first session of our week and Plan A is to play a long after a re-entry into the bullish channel and re-test of that bottom line, from above. I will of course, look for other StP setups at Hotspot 1 – not ruling out a short after some consolidation of course. Hotspot 2 is a little while off yet but could prove interesting later in the day.
Have a great new week everyone and as always – happy surfing.
Geoff | Certified SurfingThePips.com Trader